PETALING JAYA: Kuching-based contractor Hartanah Kenyalang Bhd, which seeks to list on the ACE Market, plans to use the proceeds raised to purchase six new excavators and pare down its borrowings, among others.
The company, which builds schools, bridges and roads, said in its draft prospectus that it plans to expand into offering design and build services.
To achieve this, part of the initial public offering (IPO) proceeds will be used to purchase Building Information Modelling software, according to Hartanah.
For the six-month period ended April 30, 2024 (6M24), all of Hartanah’s projects in hand were those commissioned by the Sarawak state and federal governments.
“We anticipate that this trend will continue as we intend to bid for more building and infrastructure construction projects from both the Sarawak state and federal governments as well as quasi-government entities.
“Any reduction in spending by either the Sarawak state government or federal government for the state of Sarawak may adversely affect our business operations, financial performance and future growth if we fail to diversify our client base,” it said.
The remaining proceeds of the IPO will be used as project working capital and to defray listing expenses.
Hartanah’s IPO will entail a public issue of 120.9 million shares and an offer for sale of 77.5 million shares by way of private placement to identified bumiputra investors approved by the Investment, Trade and Industry Ministry.
Under the public issue, a total of 31 million shares will be open for the Malaysian public, 18.6 million shares for eligible directors and employees of Hartanah and 71.3 million shares to be placed out to selected investors.
Hartanah, which reported a profit after tax of RM5.66mil against a revenue of RM71.18mil in 2023, is owned by brothers Seah Boon Tiat (31.5%) and Seah Boon Kee (21%), Tony Cheok (21%), Peter Chai (25%) and other shareholders (1.5%) pre-IPO.
